Pakistan’s Fractured Pipeline: How US Pressure Scuttled a Lucrative Gas Deal with Iran

US State Department spokesman Matthew Miller asserts America does not support the Pakistan Iran Gas Pipeline plan, and engaging in business with Iran could result in being hit by US sanctions.

During a recent press conference in Washington, in response to a question about the gas pipeline project with Pakistan and Iran, Matthew Miller made this statement, emphasizing the risks associated with conducting business with Iran.

In a query regarding the gas pipeline project, Matthew Miller was asked to confirm whether Assistant Secretary Donald Lowe had expressed disapproval of Pakistan commencing work on a gas pipeline with Iran. Currently, Pakistan is consulting with some legal firms to determine the feasibility of securing a waiver from the US.

In response, Matthew Miller stated that ‘I will not review any possible sanctions measures, as I do not discuss sanctions-related matters during these briefings, but we consistently advise that engaging in business with Iran carries the risk of being subject to our sanctions, and we would advise everyone to consider this carefully, and as the Assistant Secretary made clear last week, we do not support this pipeline project moving forward.’

Mumtaz Zahra Baloch, the spokesperson of the Pakistani Foreign Office, reaffirmed Pakistan’s commitment to the Pakistan-Iran gas pipeline project on March 21, 2024, stating that the decision will be made by the government of Pakistan.

Furthermore, the spokesperson emphasized that ‘this pipeline is being constructed by Pakistan in its territory, and the initial focus is on the construction of the gas pipeline, to which we are committed.’

US Assistant Secretary of State for South Asia Donald Lowe expressed his stance on the Pakistan-Iran gas pipeline project during a meeting of the Foreign Ministry subcommittee in Washington, DC, stating that the US would ‘stop this pipeline,’ reiterating the US government’s opposition to the project.

This section contains related reference points (Related Nodes field).

During the committee meeting, Donald Lowe acknowledged that after the Islamabad administration approved the construction of the 80 km long section of the Iran-Pakistan (IP) gas pipeline in February, the US attempted to halt the project’s progress.

The primary objective of the project is to supply gas from Iran to Pakistan and neighboring India; however, the project has been stalled due to international sanctions imposed on Iran.

According to Global Energy Monitor – GEM.wiki, the Iranian section of the pipeline spans 1,100 km, starting from the Pars energy economic zone to Iranshahr and Bushehr, and then crossing the Iran-Pakistan border [[1]].

Pakistan’s Ministry of Energy’s Petroleum Division recently announced plans to construct a pipeline from the Iranian border to Gwadar in the first phase [[2]].

As per the agreement, a party may be required to pay a financial penalty if it fails to complete its share of the pipeline construction within the specified timeframe.

On February 23, the caretaker Cabinet Energy Committee approved the laying of an 81 km pipeline from the Iranian border to Gwadar.

Despite US opposition, Pakistan remains committed to the Iran-Pakistan gas pipeline project, as stated by Mumtaz Zahra Baloch, the spokesperson of the Pakistani Foreign Office [[3]].

iran-pakistan gas pipeline latest news

US Opposition to Iran-Pakistan Gas Pipeline: A Significant Hurdle to Regional Cooperation

The recent statement from the US State Department opposing the Iran-Pakistan gas pipeline has created significant obstacles for the long-stalled project. The pipeline, also known as the “Peace Pipeline,” aims to deliver natural gas from Iran to Pakistan, a country experiencing severe energy shortages [[3]]. US State Department spokesperson Matthew Miller emphasized that the US does not support the project, citing the risk of US sanctions for engaging in business with Iran.

This is not the first instance of US disapproval of the project. In 2010, when the pipeline deal was signed between Iran and Pakistan, the US raised concerns about the project, citing Iran’s nuclear program and its support for terrorist groups [[2]]. Since then, the project has been stalled due to various reasons, including US sanctions and Pakistan’s inability to secure funding for its share of the project.

Despite US opposition, Pakistan has consistently reaffirmed its commitment to the project. Mumtaz Zahra Baloch, the spokesperson of the Pakistani Foreign Office, stated that the government is committed to the construction of the pipeline, which is being built in Pakistan’s territory [[2]]. Pakistan has also consulted with legal firms to determine if the US can grant a waiver or not.

On March 13, 2024, Pakistan announced the construction of an 80-kilometer segment of the pipeline, which has been welcomed by Iran [[1]]. This development is seen as a positive step for the project, but US opposition may create hurdles for the project’s progress.

The US opposition to the pipeline is not unexpected, given its long-standing differences with Iran. However, the project has the potential to benefit not only Pakistan but also the entire region. The pipeline can provide a reliable source of energy for Pakistan and reduce its dependence on imported fuels. It can also promote regional cooperation and economic integration between Iran and Pakistan.

The US opposition to the Iran-Pakistan gas pipeline is a significant setback for the project. However, it is not the end of the road. Pakistan and Iran can still explore ways to overcome the hurdles and complete the project. The project’s success will depend on the two countries’ ability to navigate the complex web of international politics and secure funding for the project.

References:

[1] The Iran-Pakistan (IP) Gas Pipeline, Institute of Strategic Studies Islamabad (ISSI)

[2] Iran-Pakistan gas pipeline remains stalled under cloud of sanctions, Reuters

<a href="https://en.wikipedia.org/wiki/Iran%E2%80%93Pakistangaspipeline”>[3] Iran–Pakistan gas pipeline, Wikipedia

As a renowned blog news writer, I am compelled to analyze the recent statement from the US State Department opposing the Iran-Pakistan gas pipeline project. The pipeline, also known as the “Peace Pipeline,” aims to deliver natural gas from Iran to Pakistan, a country experiencing severe energy shortages.

The US State Department spokesperson, Matthew Miller, emphasized that the US does not support the project, citing the risk of US sanctions for engaging in business with Iran. This is not the first instance of US disapproval of the project. In 2010, when the pipeline deal was signed between Iran and Pakistan, the US raised concerns about the project, citing Iran’s nuclear program and its support for terrorist groups.

Since then, the project has been stalled due to various reasons, including US sanctions and Pakistan’s inability to secure funding for its share of the project. The recent statement from the US State Department has created significant obstacles for the long-stalled project.

Despite US opposition, Pakistan has consistently reaffirmed its commitment to the project. Mumtaz Zahra Baloch, the spokesperson of the Pakistani Foreign Office, stated that the government is committed to the construction of the pipeline, which is being built in Pakistan’s territory. Pakistan has also consulted with legal firms to determine if the US can grant a waiver or not.

On March 13, 2024, Pakistan announced the construction of an 80-kilometer segment of the pipeline, which has been welcomed by Iran. This development is seen as a positive step towards the completion of the project.

However, the reality is that the US sanctions will continue to pose a significant hurdle to the project’s progress. As seen in recent deals between Pakistan and Iran, the US has warned of sanctions risks for Pakistan after the government in Islamabad signed security and economic deals with Iran [[1]]. Additionally, Iran’s oil and electricity export revenues are blocked in Pakistan due to US sanctions [[2]].

The pipeline project has also been affected by arbitration issues between Iran and Pakistan. Iran has put Pakistan on notice over the gas pipeline, and there have been issues with the initial focus on the construction of the gas pipeline [[3]].

the Iran-Pakistan gas pipeline project is a significant regional cooperation project that has been stalled due to various reasons, including US sanctions. Despite US opposition, Pakistan remains committed to the project, and recent developments

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